Archive for April 2019

New Overnight Developments Abroad - Daily Update

Stocks and Oil Firmer but Dollar and Fixed Income Asset Prices Lower

April 12, 2019

The dollar has weakened 0.7% against the Aussie dollar, 0.6% relative to the kiwi, 0.5% versus the euro, 0.4% vis-a-vis the loonie, 0.3% against the yen, peso and sterling and 0.2% versus the Swiss franc and Chinese yuan. The price of WTI oil strengthened nearly 1% overnight and is again above $64.00 per barrel. The […] More

New Overnight Developments Abroad - Daily Update

Stronger Dollar, Flat U.S. Share Prices and Lower Commodity Prices

April 11, 2019

Compared to Wednesday’s closing, the dollar has strengthened 0.6% against the Aussie dollar, 0.5% versus the kiwi, 0.4% relative to the yen and loonie, 0.2% vis-a-vis sterling and 0.1% against the euro and yuan. Share prices overnight fell in China, Hong Kong and Australia¬† but rose in Europe. The DOW initially rose but now shows […] More

Central Bank Watch

FOMC Minutes

April 10, 2019

Today’s published FOMC minutes from the March 19-20 meeting do not include startling revelations not covered at Chairman Powell’s press conference. It was one of the most newsworthy meetings in a considerably long time, as policymakers scrapped plans for rate hikes in 2019 and implied no more than one hike in 2020, announced a decrease […] More

Central Bank Watch

ECB Governing Council Meeting: No Change in Stance Was Expected, and None Got Delivered

April 10, 2019

At the ECB Governing Council meeting, the structure of Euroland central bank interest rates since March 2016 (a zero percent refinancing rate flanked by an overnight deposit rate of -0.40% and a marginal lending facility rate of 0.25%), was again retained, and forward guidance reaffirmed that rates would stay at present levels or lower at […] More

New Overnight Developments Abroad - Daily Update

ECB Left Policy Unchanged, and Now Investors Await FOMC Minutes

April 10, 2019

At noontime in NY, the dollar was trading at Tuesday’s closing level against the euro and loonie but had drifted lower by 0.4% against the Australian dollar, 0.3% relative to sterling, and 0.2% vis-a-vis the yen and kiwi. The dollar is down more sharply against the peso but up 0.2% versus the Swiss franc and […] More

Deeper Analysis

Comment on Inflation

April 9, 2019

The current U.S. economic upswing is just three months short of setting a new record for longevity, and yet inflation remains stubbornly below the Federal Reserve’s target. Just as it proved frustratingly hard to lower inflation sustainably during the last third of the twentieth century, policymakers in the United States, Japan, and Europe have grappled […] More

New Overnight Developments Abroad - Daily Update

Brexit and Tariff Man Leading the Overnight News

April 9, 2019

A decision is needed tomorrow on whether and how long to grant Britain another extension on Brexit talks. In the meantime, Prime Minister May today will be holding talks with her German and French counterparts. She wants a short extension to June 30th but seems no closer to forging a parliamentary coalition behind any plan. […] More

New Overnight Developments Abroad - Daily Update

Quiet Start to Week in Financial Markets

April 8, 2019

The dollar is unchanged from Friday closing levels against the Swiss franc, Australian dollar, Chinese yuan and Mexican peso. The U.S. currency has slipped 0.2% against the yen and sterling and has edged down 0.1% relative to the euro and Canadian dollar. Ten-year U.S. Treasury, British gilt and German bund yields are unchanged, while the […] More

Foreign Exchange Insights and Next Week

Next Week

April 5, 2019

Central Banks: The European Central Bank heads a list of scheduled central banks that will be reviewing monetary policy next week. Serbia, Peru and Israel are also on that list. Minutes from the FOMC meeting in March will be published. Mersch and Draghi of the ECB, DeBelle of the Reserve Bank of Australia, Fed Vice […] More

New Overnight Developments Abroad - Daily Update

Jobs Day in America

April 5, 2019

The dollar marked time overnight as investors await today’s release of U.S. March labor market data. The dollar slipped 0.2% against the euro but moved even less on balance against other key currencies. The price of gold, $1,294.10 per ounce, also is unchanged from Thursday’s close. U.S. employment growth in the prior two months was […] More

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